Cabinet approves New Scheme for promotion of Rural Housing

The Union Cabinet has approved a new scheme for promotion of Rural Housing in the country. It will enable people in rural areas to construct new houses or add to their existing pucca houses to improve dwelling units.

Under it, Government will provide interest subsidy to every rural household who is not covered under the Pradhan Mantri Aawas Yojana (Grameen)-PMAY(G).

Features of Scheme

It will be implemented by National Housing Bank (NHB). Under the scheme, the beneficiary will be provided interest subsidy for loan amount upto Rs. 2 Lakhs for taking loan.

Government will provide net present value of interest subsidy of 3% to NHB upfront which will, in turn, pass it to the Primary Lending Institutions (Scheduled Commercial Banks, NBFCs etc.).

Government will also take necessary steps for proper convergence of the scheme with PMAY-G including technical support to beneficiary through existing arrangements.

It will improve housing stock in the rural areas, as well as create employment opportunities in rural housing sector.